India, Sept. 17 -- Representatives of the All India Petroleum Dealers Association (AIPDA) met senior officials of the Ministry of Petroleum and Natural Gas on Thursday to discuss their demand for an exemption from the merchant discount rate (MDR) on UPI transactions involving fuel purchases. The dealers' body said the additional cost could put pressure on dealer margins because retail fuel sales are conducted on prescribed commissions.

Under the new UPI framework, a flat MDR of Rs5 per transaction applies to petrol and diesel purchases above Rs2,000. According to petroleum dealers, such transactions account for around 30-40 per cent of purchases across retail outlets in the country. Dealers have therefore sought a complete exemption for...